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39-502: Great-West Lifeco Inc. is a Canadian insurance-centered financial holding company that operates in North America (Canada and United States), Europe and Asia through five wholly owned, regionally focused subsidiaries. Many of the companies it has indirect control over are part of its largest subsidiary, The Canada Life Assurance Company ; the others (Great West Life & Annuities Financial Inc.) are managed by Great-West Lifeco U.S. LLC,

78-488: A tiered structure . Holding companies are also created to hold assets such as intellectual property or trade secrets , that are protected from the operating company. That creates a smaller risk when it comes to litigation . In the United States, 80% of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed. That is, if Company A owns 80% or more of

117-600: A U.S. based subsidiary. Great-West Lifeco is indirectly controlled by Montreal billionaire Paul Desmarais Jr. through his stake in the Power Corporation of Canada (owned by the Desmarais family since 1968), which owns 72% (down slightly from 74.6% in 2005) of Great-West Lifeco. The hyphen in the company's name was originally a typesetter's error. For the three months ending June 2013, 63% of revenue originated in Canada, 26% from

156-517: A matter of broadcast regulation . In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code . A corporation is a personal holding company if both of the following requirements are met: A parent company is a company that owns enough voting power in another firm (or subsidiary ) to control management and operations by influencing or electing its board of directors . The definition of

195-425: A parent company differs from jurisdiction to jurisdiction, with the definition normally being defined by way of laws dealing with companies in that jurisdiction. When an existing company establishes a new company and keeps majority shares with itself, and invites other companies to buy minority shares, it is called a parent company. A parent company could simply be a company that wholly owns another company, which

234-465: A tending subsidiary of the purchasing company, which, in turn, becomes the parent company of the subsidiary. (A holding below 50% could be sufficient to give a parent company material influence if they are the largest individual shareholder or if they are placed in control of the running of the operation by non-operational shareholders.) In the United Kingdom, the term holding company is defined by

273-837: A universal life policy which differed from those offered by competitors. Two years later, in 1984, the Power Financial Corporation was created to be a holding company for Great-West and its numerous businesses. In 1997, Great-West Lifeco took over London Life, acquiring Canada Life Financial in 2003. Great-West Lifeco began an acquisitions spree on February 17, 2003, when it purchased Canada Life Financial for US$ 4.7 billion followed by Indiana Health Network incIHN three years later in 2006 and Putnam Investment Trust on August 3, 2007, for $ 3.9 billion (from Marsh & McLennan Companies ). On April 1, 2008, subsidiary Great-West Life & Annuity Insurance Company sold Denver based Great-West Healthcare to CIGNA for about US$ 1.9 billion. With

312-458: Is defined by Part 1.2, Division 6, Section 46 of the Corporations Act 2001 (Cth) , which states: A body corporate (in this section called the first body) is a subsidiary of another body corporate if, and only if: Toronto-based lawyer Michael Finley has stated, "The emerging trend that has seen international plaintiffs permitted to proceed with claims against Canadian parent companies for

351-453: Is sometimes done on a per- market basis. For example, in Atlanta both WNNX and later WWWQ are licensed to "WNNX LiCo, Inc." (LiCo meaning "license company"), both owned by Susquehanna Radio (which was later sold to Cumulus Media ). In determining caps to prevent excessive concentration of media ownership , all of these are attributed to the parent company, as are leased stations , as

390-520: Is then known as a " wholly owned subsidiary ". Power Corporation of Canada Power Corporation of Canada was formed in 1925 by two stockbrokers – Arthur J. Nesbitt and his partner, Peter A.T. Thomson. Nesbitt served as the company's first president. Power Corporation was created as a holding company to manage their substantial investments in public utility companies involved in the electrical power industry in Quebec's Eastern Townships , plus in

429-473: The Companies Act 2006 at section 1159. It defines a holding company as a company that holds a majority of the voting rights in another company, or is a member of another company and has the right to appoint or remove a majority of its board of directors, or is a member of another company and controls alone, pursuant to an agreement with other members, a majority of the voting rights in that company. After

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468-519: The Paul Desmarais group in 1968 and by 1970, no longer had any involvement. In 1975, Power Corporation attempted a takeover of the Argus Corporation holding company which had substantial interests in brewing, food retailing, farm implements manufacturing, paper products and other businesses. The Argus owners rejected the takeover attempt and decided to retain their voting shares, while 50% of

507-613: The financial crisis of 2007–2008 , many U.S. investment banks converted to holding companies. According to the Federal Financial Institutions Examination Council 's website, JPMorgan Chase , Bank of America , Citigroup , Wells Fargo , and Goldman Sachs were the five largest bank holding companies in the finance sector, as of December 2013 , based on total assets. The Public Utility Holding Company Act of 1935 caused many energy companies to divest their subsidiary businesses. Between 1938 and 1958

546-504: The 2020 reorganization, Power Corporation owns 100% of Power Financial’s common shares. In 2002, Power Corporation created the Sagard SAS fund, then Sagard Capital Partners, later named Sagard Holdings, in 2004, in the United States. R. Jeffrey Orr was named Power Financial Corporation CEO in 2005. By 2007, IGM Financial was the holding company for Power Corporation's investment fund companies. Power Corporation also by 2009 had interests in

585-541: The American market starting in Fargo, North Dakota, followed by Michigan and Minnesota in 1920 and later Indiana, Missouri, Ohio, Kansas, California, and Pennsylvania in the early 1940s. Within its first decade, it successfully entered Eastern Canada , had market exposure in every Canadian province and became one the industry's leading companies in terms of growth and size; by 1896, it was present throughout Canada. Brock got sick and

624-866: The Canada Life amalgamation received approval from the Canadian government in November 2019. They officially begin operating as The Canada Life Assurance Company on January 1, 2020. After the merger into Canada Life, employees of the merged companies will work from company's five main offices in Winnipeg, London, Toronto, Montreal and Regina, with no cuts to employment. On May 31, 2023, Great-West Lifeco announced that Franklin Templeton Investments would acquire Putnam Investments for $ 925 million. Putnam Investments subsidiary, PanAgora Asset Management would not be included in

663-531: The Canadian-based ones were managed from Western Canada . Great-West's founder started the company as an attempt to raise capital needed locally to develop farm land and retail businesses. Great-West's first president was Winnipeg mayor Alexander Macdonald who took on that role in 1892; the founder Jeffry Hall Brock was managing director. Its first death claim was in 1893 for $ 1,000, and in 1912 two Titanic policyholders were covered. In 1906, Great-West entered

702-465: The U.S., and 10% from Europe. Group retirement products (Canadian sales up 49%) and 401k markets (U.S. Great West Financial sales up 34%) remain key areas of growth for the company. Lower U.K. wealth management single premiums negatively affected growth. Approximately half of company profit comes from Canada, a third from Europe and the rest from the United States. In the first half of 2011, premium income made up 63.99% of total revenue, up from 56.07%. In

741-455: The United Kingdom, is generally held that an organisation holding a 'controlling stake' in a company (a holding of over 51% of the stock) is in effect the de facto parent company of the firm, having overriding material influence over the held company's operations, even if no formal full takeover has been enacted. Once a full takeover or purchase is enacted, the held company is seen to have ceased to operate as an independent entity but to have become

780-450: The acquisition. The deal was completed in January 2024. Holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own stock of other companies to form a corporate group . In some jurisdictions around

819-492: The allegedly wrongful activity of their foreign subsidiaries means that the corporate veil is no longer a silver bullet to the heart of a plaintiff's case." The parent subsidiary company relationship is defined by Part 1, Section 5, Subsection 1 of the Companies Act, which states: 5.—(1) For the purposes of this Act, a corporation shall, subject to subsection (3), be deemed to be a subsidiary of another corporation, if — In

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858-536: The exchange District in Winnipeg on the corner of Rorie Street and Lombard Avenue. In 1912, two policyholders who died on the Titanic were covered by the company, after its first death payout in 1893. The earliest roots of any of the companies under its management were set in 1847 Hamilton, Ontario by subsidiary Canada Life (then known as Canada Life Assurance Company); it was later acquired by The Great-West Life Assurance Company . The original name of Canada Life included

897-562: The family’s political connections give it unfair advantages," says the New York Times in 2007. The company has been known to defend federalism in Quebec . Paul Desmarais Jr. , was one of thirty members of the North American Competitiveness Council , a group whose advice directed the policies of Security and Prosperity Partnership of North America (SPP). Several former Canadian prime ministers have occupied

936-549: The finance industry, as well as interests in other business sectors such as sustainable and renewable energy. 1984 saw the creation of a management and holding company, Power Financial Corporation . Expansion for the group began in the 1970s, in Europe and followed in the 1990s, in Asia. The group's involvement in the finance sector continued in 2000, with the acquisition of Canada Life , Mackenzie Financial and Putnam Investments . Following

975-477: The non-voting shares were purchased by Power Corp. In 1976, ten percent of the voting shares were sold by E. P. Taylor to Desmarais. Argus was eventually sold in 1978 to a Conrad Black -controlled firm. In 1989, corporation began supporting the Imagine Canada program. While Power Corporation was originally established as an electric utility holding company, the company became a conglomerate with interests in

1014-571: The number of holding companies declined from 216 to 18. An energy law passed in 2005 removed the 1935 requirements, and has led to mergers and holding company formation among power marketing and power brokering companies. In US broadcasting , many major media conglomerates have purchased smaller broadcasters outright, but have not changed the broadcast licenses to reflect this, resulting in stations that are (for example) still licensed to Jacor and Citicasters , effectively making them such as subsidiary companies of their owner iHeartMedia . This

1053-597: The other Canadian provinces of Ontario , Manitoba , New Brunswick and British Columbia . In the latter part of the 1930s, the company acquired a controlling interest in Bathurst Pulp and Paper Company Ltd. , and in 1938, Canadian Oil Companies Ltd. , selling the latter to Shell Oil Company in 1962. In 1952, Arthur J. Nesbitt was succeeded as president by his son, Arthur Deane Nesbitt (1910–1978). The Nesbitt family sold most of its interest in Power Corporation to

1092-469: The parent company of La Presse , Mackenzie Financial , London Life Insurance , Canada Life Assurance , Great-West Life , and Putnam Investments . The company reduced its number of board directors in 2008 from 21 to 12. Power Corporation acquired a stake in China Asset Management in 2011, purchasing 10% from CITIC Securities Co. Also that year, Power Corporation's new fund Sagard China

1131-520: The roles and continue to serve as chairman and deputy chairman, respectively, of Power Corporation's board of directors. R. Jeffrey Orr, president and chief executive officer of Power Financial, become president and chief executive officer of Power Corporation, effective February 13, 2020. The corporation has been criticized for its influence on Canadian politics through its relationships with prominent politicians, including several prime ministers and provincial premiers. Critics "occasionally charge that

1170-540: The stock of Company B, Company A will not pay taxes on dividends paid by Company B to its stockholders, as the payment of dividends from B to A is essentially transferring cash within a single enterprise. Any other shareholders of Company B will pay the usual taxes on dividends, as they are legitimate and ordinary dividends to these shareholders. Sometimes, a company intended to be a pure holding company identifies itself as such by adding "Holding" or "Holdings" to its name. The parent company–subsidiary company relationship

1209-465: The third quarter of 2010, British sales outpaced all other regions with 45% growth, followed by the U.S. financial services business (up 41%). In 2009, 100% owned subsidiary London Life ranked 14th among Canada's largest private companies. Great-West Life was founded in Winnipeg in 1891 by Jeffry Hall Brock , a local insurance agent. The company was incorporated on August 28, 1891, with locals such as James Ashdown on its board. It built its head office in

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1248-451: The transaction Great-West Lifeco lost about 1.9 million customers (about three quarters of their medical employers). Other acquisitions include the 2006 takeover of US Bancorp 's retirement plans business which added $ 104 billion in assets at the time, and more retirement plans the same year but from MetLife . Irish Life, based in Dublin as a life assurance, pensions, and investments group,

1287-469: The word Assurance in place of insurance, something that was more common among British companies. Its second oldest company London Life was founded in 1874 and taken over by Great-West in 1997, one year after it purchased the Canadian operations of the Prudential Insurance Company of America When created in 1890–1891, 31 of the 40 insurance companies in Canada were foreign-owned and none of

1326-410: The world, holding companies are called parent companies , which, besides holding stock in other companies, can conduct trade and other business activities themselves. Holding companies reduce risk for the shareholders , and can permit the ownership and control of a number of different companies. The New York Times uses the term parent holding company . Holding companies can be subsidiaries in

1365-592: Was acquired by Great West Lifeco in 2013 from the Irish government. On July 18, 2013, Canadian subsidiary Canada Life Limited completed the takeover of Irish Life Assurance. Great-West Lifeco in 2018 acquired Invesco (Ireland), an Irish company. In October 2018, Stefan Kristjanson retired and was replaced by Jeff Macoun as COO of Great-West Lifeco Inc. In January 2019, Protective Life Insurance Co. bought part of Great-West Life & Annuity Insurance Co. for $ 1.2 billion. A merger of several divisions and subsidiaries to be renamed,

1404-409: Was due in part to high insurance rates and a lack of financing available to farmers. In 1942, it was the first Canadian company "to enter the accident and health insurance business." In 1960, the company moved to Osborne Street North, where it had constructed a new building on the site of the old Osborne Stadium. In 1969, Great-West was purchased by Power Corporation of Canada of Paul Desmarais , and

1443-589: Was forced to leave Great-West in 1912, three years before he died. He was succeeded as CEO by C.C. Ferguson in 1915. During the next twenty years the company's finances were negatively affected by World War I, the 1918 flu epidemic and the great depression but its market position remained strong; the stock market crash of 1929 and World War II had a positive impact on the company. The company was highly diversified, with investments spread amongst mortgages and government bonds. Great-West's early success in Western Canada

1482-533: Was founded. Through a number of recent initiatives, in partnership with its subsidiaries Great-West Lifeco and IGM Financial, the Power Corporation group has been actively participating in the emerging fintech industry. This fintech strategy is achieved through Portag3 (which created Canada’s largest fintech investment fund), Wealthsimple, Personal Capital and Diagram. In connection with the reorganization, Paul Desmarais Jr. and André Desmarais retired as co-chief executive officers of Power Corporation after 24 years in

1521-492: Was subsequently made into a wholly owned subsidiary. The takeover prompted the resignation of Great-West president David E. Kilgour, whose exit and severance settlement was negotiated by his son-in-law, John Turner , through Fraser Elliott . Kilgour was succeeded as president by James Burns . In 1983, the company expanded again into a building on Broadway and Osborne. In 1979, US and Canadian operations became separate due mostly to rapid US growth. In 1982, Great-West began offering

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